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Arguments Against Software Patents in India

Pranesh Prakash — Mon, 22 Feb 2010 22:30:00 +0530

This blog post is based on a presentation made at the iTechLaw conference held on February 5, 2010. The audience consisted of lawyers from various corporations and corporate law firms. As is their wont, most lawyers when dealing with software patents get straight to an analysis of law governing the patenting of computer programmes in India and elsewhere, and seeing whether any loopholes exist and can be exploited to patent software. It was refreshing to see at least some lawyers actually going into questions of the need for patents to cover computer programs. In my presentation, I made a multi-pronged case against software patents: (1) philosophical justification against software patents based on the nature of software; (2) legal case against software patents; (3) practical reasons against software patents.

Preamble

Through these arguments, it is sought to be shown that patentability of software is not some arcane, technical question of law, but is a real issue that affect the continued production of new software and the everyday life of the coder/hacker/software programmer/engineer as well as consumers of software (which is, I may remind you, everywhere from your pacemaker to your phone). A preamble to the arguments would note that the main question to ask is: why should we allow for patenting of software? Answering this question will lead us to ask: who benefits from patenting of software. The conclusion that I come to is that patenting of software helps three categories of people: (1) those large software corporations that already have a large number of software patents; (2) those corporations that do not create software, but only trade in patents / sue on the basis of patents ("patent trolls"); (3) patent lawyers. How they don't help small and medium enterprises nor society at large (since they deter, rather than further invention) will be borne out by the rest of these arguments, especially the section on practical reasons against software patents.

What are Patents?

Patents are a twenty-year monopoly granted by the State on any invention. An invention has to have at least four characteristics: (0) patentable subject matter; (1) novelty (it has to be new); (2) inventive step / non-obviousness (even if new, it should not be obvious); (3) application to industry. A monopoly over that invention, thus means that if person X has invented something, then I may not use the core parts of that invention ("the essential claims") in my own invention. This prohibition applies even if I have come upon my invention without having known about X's invention. (Thus, independent creation is not a defence to patent infringement. This distinguishes it, for instance, from copyright law in which two people who created the same work independently of each other can both assert copyright.) Patents cover non-abstract ideas/functionality while copyright covers specific expressions of ideas. To clarify: imagine I make a drawing of a particular machine and describe the procedure of making it. Under patent law, no one else can make that particular machine, while under copyright law, no one can copy that drawing.

Philosophical Justification Against Software Patents

Even without going into the case against patents per se (lack of independent creation as a defence; lack of 'harm' as a criterion leading to internalization of all positive externalities; lack of effective disclosure and publication; etc.), which has been done much more ably by others like Bessen & Meurer (especially in their book Patent Failure) and Boldrin & Levine (in their book Against Intellectual Monopoly, the full text of which is available online).

But there is one essentially philosophical argument against software as subject matter of a patent. Software/computer programs ("instructions for a computer"), as any software engineer would tell you, are merely algorithms ("an effective method for solving a problem using a finite sequence of instructions") that are meant to be understood by a computer or a human who knows how to read that code.

Algorithms are not patentable subject matter, as they are mere expressions of abstract ideas, and not inventions in themselves. Computer programs, similarly, are abstract ideas. They only stop being abstract ideas when embodied in a machine or a process in which it is the machine/process that is the essential claim and not the software. That machine or process being patented would not grant protection to the software itself, but to the whole machine or process. Thus the abstract part of that machine/process (i.e., the computer program) could be used in any other machine/process, as it it is not the subject matter of the patent. Importantly, just because software is required to operate some machine would then not mean that the machine itself is not patentable, just that the software cannot be patented in guise of patenting a machine.

Legal Case Against Software Patents

In India, section 3(k) of the Patent Act reads:

(3) The following are not inventions within the meaning of this Act: (k) a mathematical or business method or computer programme (sic) per se or algorithms.

As one can see, computer programs are place in the same category as "mathematical methods", "algorithms", and "business methods", hence giving legal validity to the idea propounded in the previous section that computer programs are a kind of algorithms (just as algorithms are a kind of mathematical method).

Be that as it may, the best legal minds in India have had to work hard at understanding what exactly "computer programme per se" means. They have cited U.S. case law, U.K. case law, E.U. precedents, and sought to arrive at an understanding of how per se should be understood. While understanding what per se means might be a difficult job, it is much easier to see what it does not mean. For that, we can look at the 2004 Patent Ordinance that Parliament rejected in 2005. In that ordinance, sections 3(k) and (ka) read as follows:

(3) The following are not inventions within the meaning of this Act: (k) a computer programme per se other than its technical application to industry or a combination with hardware; (ka) a mathematical method or a business method or algorithms.

Thus, it is clear that the interpretation that "computer programme per se" excludes "a computer programme that has technical application to industry" and "a computer programme in combination with hardware" is wrong. By rejecting the 2004 Ordinance wording, Parliament has clearly shown that "technical application to industry" and "combination with hardware" do not make a computer programme patentable subject matter.

Indeed, what exactly is "technical application to industry"? "Technical" has various definitions, and a perusal through those definitions would show that barely any computer program can be said not to relate to a technique, not involve "specialized knowledge of applied arts and sciences" (it is code, after all; not everyone can write good algorithms), or not relate to "a practical subject that is organized according to scientific principles" or is "technological". Similarly, all software is, by definition, meant to be used in combination with hardware. Thus, it being used in combination with hardware must not, as argued above, give rise to patentability of otherwise unpatentable subject matter category.

In 2008, the Patent Office published a new 'Draft Manual Of Patent Practice And Procedure' in which it sought to allow patenting of certain method claims for software inventions (while earlier the Patent Office objected to method claims, allowing only device claims with hardware components). This Draft Manual was withdrawn from circulation, with Shri N.N. Prasad (then Joint Secretary of DIPP, the department administering the Patent Office) noting that the parts of the Manual on sections 3(d) and 3(k) had generated a lot of controversy, and were ultra vires the scope of the Manual (which could not override the Patent Act). He promised that those parts would be dropped and the Manual would be re-written. A revised draft of the Manual has not yet been released. Thus the interpretation provided in the Draft Manual (which was based heavily on the interpretation of the U.K. courts) cannot not be relied upon as a basis for arguments in favour of the patentability of software in India.

In October 2008, CIS helped organize a National Public Meeting on Software Patents in which Indian academics, industry, scientists, and FOSS enthusiasts all came to the conclusion that software patents are harmful for both the industry as well as consumers.

Practical Reasons Against Software Patents

This is going to be an attempt at distilling and simplifying some of the main practical arguments against patenting of software.

There are traditionally four incentives that the patent system caters to: (1) incentive to invent; (2) incentive to disclose; (3) incentive to commercialize; and (4) incentive to invent substitutes. Apart from the last, patenting of software does not really aid any of them.

Patent Landmines / Submarine Patents / Patent Gridlocks / No Exception for Independent Creation

Given that computer programs are algorithms, having monopolies over such abstract ideas is detrimental to innovation. Just the metaphors say a lot about software patents: landmines (they cannot be seen/predicted); submarines (they surface out of the blue); gridlocks (because there are so many software patents around the same area of computing, they prevent further innovation in that area, since no program can be written without violating one patent or the other).

Imagine the madness that would have ensued had patents been granted when computer programming was in its infancy. Imagine different methods of sorting (quick sort, bubble sort) that are part of Computer Science 101 had been patented. While those particular instances aren't, similar algorithms, such as data compression algorithms (including the infamous LZW compression method), have been granted patents. Most importantly, even if one codes certain functionality into software independently of the patent holder, that is still violative of the patent. Computer programs being granted patents makes it extremely difficult to create other computer programs that are based on the same abstract ideas. Thus incentives # (1) and (3) are not fulfilled, and indeed, they are harmed. There is no incentive to invent, as one would always be violating one patent or the other. Given that, there is no incentive to commercialize what one has invented, because of fear of patent infringement suits.

An apt illustration of this is the current difficulty of choosing a royalty-free video format for HTML 5, as it shows, in practical terms, how difficult it is to create a video format without violating one patent or the other. While the PNG image format was created to side-step the patent over the LZW compression method used in the GIF image format, bringing Ogg Theora or Dirac (both patent-free video format) to surpass the levels of H.264/MPEG-4 AVC or VC-1 will be very difficult without infringing dozens if not hundreds of software patents. Chris DiBona of Google, while talking about improving Ogg Theora as part of its inclusion in HTML 5 specifications said, "Here’s the challenge: Can Theora move forward without infringing on the other video compression patents?" Just the number of companies and organization that hold patents over H.264 is astounding, and includes: Columbia University, Electronics and Telecommunications Research Institute of Korea (ETRI), France Télécom, Fujitsu, LG Electronics, Matsushita, Mitsubishi, Microsoft, Motorola, Nokia, Philips, Robert Bosch GmbH, Samsung, Sharp, Sony, Toshiba, and Victor Company of Japan (JVC). As is the amount of royalties to be paid ("[t]he maximum royalty for these rights payable by an Enterprise (company and greater than 50% owned subsidiaries) is $3.5 million per year in 2005-2006, $4.25 million per year in 2007-08 and $5 million per year in 2009-10"; with royalty per unit of a decoder-encoder costing upto USD 0.20.)

Indeed, even the most diligent companies cannot guard themselves against software patents. FFII estimates that a very simple online shopping website would violate twenty different patents at the very least. Microsoft recently lost a case against i4i when i4i surfaced with a patent covering custom XML as implemented in MS Office 2003 and MS Office 2007. As a result Microsoft had to ship patches to its millions of customers, to disable the functionality and bypass that patent. The manufacturers of BlackBerry, the Canadian company Research in Motion, had to shell out USD 617 million as settlement to NTP over wireless push e-mail, as it was otherwise faced with the possibility of the court shutting down the BlackBerry service in the U.S. This happened despite there being a well-known method of doing so pre-dating the NTP patents. NTP has also filed cases against AT&T, Sprint Nextel, T-Mobile, Verizon Wireless, and Palm Inc. Microsoft was also hit by Visto Corporation over those same NTP patents, which had been licensed to Visto (a startup).
- Don't These Cases Show How Software Patents Help Small Companies?
  
  The astute reader might be tempted to ask: are not all of these examples of small companies getting their dues from larger companies? Doesn't all of this show that software patents actually help small and medium enterprises (SMEs)? The answer to that is: no. To see why, we need to note the common thread binding i4i, NTP, and Visto. None of them were, at the time of their lawsuits, actually creating new software, and NTP was an out-and-out "non-practising entity"/"patent holding company" AKA, patent troll. i4i was in the process of closing shop, and Visto had just started up. None of these were actually practising the patent. None of these were producing any other software. Thus, none of these companies had anything to lose by going after big companies. In other words, the likes of Microsoft, RIM, Verizon, AT&T, etc., could not file counter-suits of patent infringement, which is normally what happens when SMEs try to assert patent rights against larger corporations. For every patent that the large corporation violates of the smaller corporation, the smaler corporation would be violating at least ten of the larger corporation's. Software patents are more helpful for software companies as a tool for cross-licensing rather than as a way of earning royalties. Even this does not work as a strategy against patent trolls.
Thus, the assertion that was made at the beginning is borne out: software patents help only patent trolls, large corporations that already have large software patent portfolios, and the lawyers who draft these patents and later argue them out in court.
Term of Patents

Twenty years of monopoly rights is outright ludicrous in an industry where the rate of turnover of technology is much faster -- anywhere between two years and five months.
Software Industry Progressed Greatly Without Patents

In India, software patents have never been asserted in courts (even though many have been illegally granted), yet the software industry in India is growing in leaps and bounds. Similarly, most of the big (American) giants of the software industry today grew to their stature by using copyright to "protect" their software, and not patents.
Copyright Exists for Software

As noted above, the code/expression of any software is internationally protected by copyright law. There is no reason to protect the ideas/functionality of that software as well.
Insufficient Disclosure

When ordinary computer programmers cannot understand what a particular software patent covers (which is the overwhelming case), then the patent is of no use. One of the main incentives of the patent system is to encourage gifted inventors to share their genius with the world. It is not about gifted inventors paying equally gifted lawyers to obfuscate their inventions into gobbledygook so that other gifted inventors can at best hazard a guess as to precisely what is and is not covered by that patent. Thus, this incentive (#2) is not fulfilled by the current system of patents either -- not unless there is a major overhaul of the system. This ties in with the impossibility of ensuring that one is not violating a software patent. If a reasonably smart software developer (who are often working as individuals, and as part of SMEs) cannot quickly ascertain whether one is violating patents, then there is a huge disincentive against developing software in that area at all.
Software Patents Work Against Free/Libre/Open Source Software

Software patents hinder the development of software and FOSS licences, as the licensee is not allowed to restrict the rights of the sub-licensees over and above the restrictions that the licensee has to observe. Thus, all patent clearances obtained by the licensee must be passed on to the sub-licensees. Thus, patented software, though most countries around the world do not recognize them, are generally not included in the default builds of many FOSS operating systems. This inhabits the general adoption of FOSS, since many of the software patents, even though not enforceable in India, are paid heed to by the software that Indians download, and the MP3 and DivX formats are not enabled by default in standard installations of a Linux OS such as Ubuntu.

Conclusion

Currently, the U.S. patent system is being reviewed at the administrative level, the legislative level, as well as the judicial level. At the judicial level, the question of business method patents (and, by extension, software patents) is before the Supreme Court of the United States of America in the form of Bilski v. Kappos. Judge Mayer of the Court of Appeals for the Federal Circuit (CAFC, which heard In re Bilksi) noted that "the patent system has run amok". The Free Software Foundation submitted a most extensive amicus curiae brief to the U.S. Supreme Court, filled with brilliant analysis of software patents and arguments against the patentability of software that is well worth a read.

CIS Statement on the WIPO Broadcast Treaty at SCCR 19

Pranesh Prakash — Mon, 01 Feb 2010 20:30:06 +0530

CIS Statement on the WIPO Broadcast Treaty at SCCR 19

The Centre for Internet and Society believes that the protection that may be afforded to broadcasters under existing international treaties, including Article 14 of the TRIPS Convention, are sufficient to safeguard the interests of broadcasters, and that the Broadcast Treaty, which has been under discussion for more than a decade without any progress, is, as the WIPO Chair observed, an expenditure of "time, energy and resources to no avail" (SCCR/15/2/rev).

We believe that at any rate webcasting/netcasting should be kept out of the ambit of the broadcast treaty, even if only restricted to "retransmission" of broadcasts as in the current draft, since by its very nature webcasting is very different from broadcasting. Webcasting is currently quite vibrant, with a recent report by Arbor Networks estimating that around ten per cent of all Web traffic is streaming video, making webcasting the fastest growing application on the Internet. Given this situation, a strong case has to be made to show that an international treaty is required to protect and promote webcasting, which has not been done.

Specifically, we believe that Paragraph 16 of the WIPO Development Agenda, which relates to preservation of a vibrant public domain, will be endangered by a right being given to webcasters which is separate from the underlying content of the transmission.

Statements by other organizations on WIPO Broadcast Treaty at SCCR 19

Piracy Studies in India

Siddharth Chadha — Fri, 22 Jan 2010 18:05:00 +0530

Special ‘301’ Reports

The ‘Special 301 Reports’ are published annually by the office of the United States Trade Representative (USTR) to examine ‘in detail the adequacy and effectiveness of intellectual property rights protection’ in countries around the globe. Sections 301-310 of the Trade Act of 1974, as amended by the Omnibus Trade and Competitiveness Act of 1988, empower the USTR ‘to identify foreign countries that deny adequate and effective protection of intellectual property rights or fair and equitable market access for U.S. persons that rely on intellectual property protection.’

India has faced considerable pressure to amend and enforce its copyright laws, more to the needs of the United States rather than reflecting the needs of its population, businesses and innovation. The 301 reports over the last decade have been largely concerned with the general problems of counterfeit and piracy in India, unlike China where specific laws adopted and enforced by the state have been critiqued. Over the course of the decade, according to the reports, the United States has been concerned with a large number of subjects including the backlog and inadequacy of India’s legal system, lack of enforcement of IP protections for media oriented products like ‘motion pictures, music, software, books and video games’, need for stronger protection of copyrights, trademarks and patents, optical media and procedural inadequacies. In 2004 the USTR reported, ‘copyright piracy is rampant, and the U.S. copyright industry estimates that lost sales resulting from piracy in India of U.S. motion pictures, sound recordings, musical compositions, computer programmes, and books totaled approximately $500 million in 2004.’

The United States articulates the reasons for concern in India – the challenge posed by Indian pirated and counterfeit goods entering American markets. It expresses its concern for lack of piracy enforcement as ‘‘growing concern for U.S. copyright industries, especially given the pirated imports are entering the market from Southeast Asia.

Over the past few years, it has also included suggestions of taking criminal action against those engaging in copyright infringement. India’s supposed ‘weak’ criminal system is mentioned in the 2008 reports, focused specifically on the need for a greater police presence enforcing IPR infringements through criminal means and ‘stronger’ border control.

The Effects of Counterfeiting and Piracy on India’s Entertainment Industry

Published in March 2009 by United States-India Business Council (USIBC) and prepared by Ernst and Young India, claims that as much as Rs.16, 000 crores are lost due to piracy. Alongside, as many as 80,000 jobs are lost directly as a result of theft and piracy, afflicting India’s entertainment industry. This report was commissioned as a part of the USIBC–FICCI Bollywood–Hollywood initiative and covered film, music, television and video games. It was funded by the Global Intellectual Property Center of the U.S. Chamber of Commerce. The spectacular press launch meeting was organized in Mumbai and also attended by Yash Chopra, chairman of FICCI Frames and Ramesh Sippy, the famed director who commented on the occasion, “I know first hand the importance of fighting piracy to support the growth of Bollywood. I commend the USIBC–FICCI initiative for enlisting all elements of the entertainment industry against piracy.” The President of USIBC, Ron Summers used the opportunity to suggest stronger legal means to tackle piracy. He said, “We strongly support passage by India of optical disc legislation that will thwart piracy in this important industry. We are pleased to stand shoulder to shoulder with counterparts in India to help protect jobs and revenues that are now being needlessly lost to piracy.”

Sixth Annual BSA and IDC Global Software Piracy Study

Business Software Alliance, in partnership with a market analysis firm IDC, published their annual study on global trends in software piracy in May 2009. Sixth in its annual series, the report critically blames the Asia Pacific region, especially India and China, for the growing levels in piracy, despite countries bringing down their piracy rates. The report says, ‘In 2008, the rate of PC software piracy dropped in slightly more than half (57) of the 110 countries studied, remained the same in nearly one third (36), and rose in just 16. However, the worldwide PC software piracy rate rose for the second year in a row, from 38 per cent to 41 per cent, mainly because PC shipments grew fastest in high-piracy countries such as China and India, overwhelming progress in these and other countries.’

In addition, it also makes an India specific point by highlighting India’s piracy trends,

‘India’s rate has dropped six points in five years, despite its sprawling PC market, of which consumers and small businesses account for 65 per cent. While consumer PC shipments grew more than 10 per cent last year, shipments to other categories dropped 7 per cent.’

Motion Pictures Distributors Association’s Internet Piracy Studies

Earlier this month, the MPA Office in India named Motion Pictures Distributors Association, along with a DtecNet a global anti-piracy company, released a study on the Internet piracy trends in India. This report places India as the fourth largest global hub of online film piracy, behind United States, Britain and Canada, with Delhi, Bangalore and Mumbai accounting for the major share of illegal downloads. It estimates that Vishal Bhardwaj’s Kaminey, was downloaded 350, 000 times on Bit Torrent with about 2/3rds of downloaders being from India. MPDA also links this study to another consultancy, Envisional’s similar suggestions, while MPDA’s managing director, Rajiv Dalal pushed for strong laws to support copyright, strong enforcement and stiff sentences for people who violate laws, on the basis of these reports.

Despite the availability of a large number of critiques available in the academic world, the media – both broadcast and print, reports shock inducing statistics verbatim, treating them as expert evidence without engaging in any analysis of the published material. Most of the piracy studies are quantitative in nature and do not provide any social class or demographic break up either of those who engage in piracy or those who buy pirated goods. It has also been pointed out by scholars like Shujen Wang that it is unreasonable to assume that every pirated copy could be counted as a lost sale, and thus a loss. In absence of research on the cultural aspects of piracy and the subsequent circulation, these reports have been successful in creating a fear psychosis in the civil society.

Enforcement of Anti-piracy Laws by the Indian Entertainment Industry

Siddharth Chadha — Fri, 22 Jan 2010 17:55:00 +0530

International Intellectual Property Alliance

The International Intellectual Property Alliance (IIPA) is an international lobby group of US media industries with close ties to the United States Trade Representative. It has in its reports consistently expressed dissatisfaction with Indian efforts to deal with piracy. IIPA works in close cooperation the other US lobby groups like the MPAA (Motion Picture Association of America) and the BSA (Business Software Alliance). The IIPA reports, which place India in a 'danger zone', significantly influence regional and international discourses on piracy. Interestingly, the IIPA in India has been very successful in regionalizing and nationalizing a global discourse. Thus, in the past few years, local industry associations in India in cinema, music and software have independently run highly emotional campaigns against piracy, reminiscent of IIPA's own campaigns.

Motion Pictures Association

The Motion Picture Association of America (MPAA) through its international counterpart, Motion Pictures Association (MPA), has been unofficially operational in India for the last 15 years. Its member companies are Walt Disney, Paramount, Sony Entertainment, Twentieth Century Fox, Universal Studios, and Warner Bros. The MPA's work in India was mostly non-obtrusive till 1994 when MPA Asia-Pacific, based in Singapore, started being represented by the high profile legal firm Lall & Sethi Advocates.

They have collectively worked on forming enforcement teams for coordinated raids in Mumbai and Delhi since 1995. Earlier this year, MPA announced its first India office to be set up in Mumbai, called the Motion Picture Distributor's Association India (Pvt.) Limited (MPDA), under the directorship of Rajiv Dalal. Mr. Dalal had previously directed strategic initiatives from the MPAA's Los Angeles office. The MPDA will engage itself in working jointly with local Indian film industries and the Indian government to promote the protection of motion pictures and television rights.

According to the organization's own assertion, in 2006 the MPA's Asia-Pacific operation investigated more than 30,000 cases of piracy and assisted law enforcement officials in conducting nearly 12,400 raids. These activities resulted in the seizure of more than 35 million illegal optical discs, 50 factory optical disc production lines and 4,482 optical disc burners, as well as the initiation of more than 11,000 legal actions.

Indian Music Industry

The world's second-oldest music companies' association, Indian Music Industry (IMI), was first established as Indian Phonographic Industry in 1936. It was re-formed in its present avatar in 1994, as a non-commercial and non-profit organization affiliated to the International Federation of Phonographic Industry (IFPI) and is registered as a society in West Bengal. IMI members includes major record companies like Saregama, HMV, Universal Music (India), Tips, Venus, Sony BMG (India), Crescendo, Virgin Records, Magnasound, Milestone, Times Music and several other prominent national and regional labels that represent over 75 per cent of the output in corporate recordings.

It was one of the first organizations in the country to start the trend of hiring ex-police officers to lead anti-piracy operations. In 1996, IMI hired Julio Ribeiro (a former Commissioner of Police, Mumbai; Director General of Police, Punjab; and Indian Ambassador to Romania) to head its anti-piracy operations. Their anti-piracy work is split into three specific regions, North and North Eastern, Western and Southern and East, each zone headed by a former senior police officer. IMI operates through offices in Kolkata, Mumbai, New Delhi, Chennai, Bangalore and several other cities and towns across India, focusing on surveillance, law enforcement, and gathering intelligence through an 80 member team hired to tackle piracy. During 2001 to 2004, IMI registered over 5500 cases, seized over 10 lakh music cassettes, and around 25 lakh CDs.

Business Software Alliance

Headquartered in Washington DC, the Business Software Alliance has a regional office in Delhi, and has been instrumental in conducting anti-piracy operations across the country. According to the BSA, India ranks 20 in global software piracy rankings, with a rate of 73 per cent while the Asia Pacific average is 53 per cent. China ranks second with a rate of 92 per cent and annual losses of $3,823 million while Pakistan ranks nine with 83 per cent piracy rate. They have engaged the general public in providing them with information on pirated software through an anti-piracy initiative – The Rewards Programme. Launched in 2005, reward amount up to Rs.50, 000, would be provided for information leading to successful legal action against companies using unlicensed software. The reward program was aimed to encourage people to support the fight against piracy and to report software piracy to the NASSCOM-BSA Anti-Piracy Software Hotline.

In 2006, BSA and NASSCOM got a shot in their arms by winning the largest settlement amount for a copyright case in India, with Netlinx India Pvt. Ltd. The case had emerged after a civil raid was conducted at the premises of Netlinx in December 2000, leading to inspection and impounding of 40 PCs, carrying illegal unlicensed software. The settlement includes damages of US$ 30,000, complete legalization of software used by them, removal of all unlicensed/pirated software and submission to an unannounced audit of computer systems during next 12 months.

Industry Enforcers

Bollywood Film and Music companies, such as T-Series and Yashraj Films, have established anti-piracy arms to combat piracy in specific markets. T-Series has been in the industry for over 15 years, as a brand of Gulshan Kumar founded Super Cassettes Industries Limited, and has often been at the forefront for conducting raids along with police officials to check piracy of its copyrighted content. In its latest announcement earlier this year, T-Series launched an anti-piracy campaign against those stealing digital content. The announcement came after they filed a complaint on June 1 with a police station in Mangalore against Classic Video shop for infringement of its copyright works like Billu, Ghajini, Aap Ka Suroor, Apne, Fashion and Karz that had been illegally downloaded and copied onto multiple discs, card readers and pen-drives.

Yashraj Films, a leading film studio, has long been a part of enforcement activities against piracy, both in the Indian market and internationally. Most recently, it was a key member in the formation of the United Producers and Distributors Forum, which also included chairman Mahesh Bhatt, Ramesh Sippy, Ronnie Screwalla of UTV, Shah Rukh Khan, Aamir Khan and Eros International. This organization is now trying to enforce anti-piracy laws by conducting raids across the country with the help of another ex-cop from Mumbai, A.A. Khan. Yashraj Films has also established anti-piracy offices in the United Kingdom and the United States to curb piracy in those markets, as overseas returns of its films, watched by the desi diaspora is one of its largest revenue earning sources. The website of Yashraj Films lists news reports from across US and Europe of instances of crackdown on pirates.

In the context of intellectual property in the creative industries, these anti-piracy agents have successfully created the halo of illegality around the subject of piracy. The discourse on informal networks and circuits of distribution of cultural goods remains hijacked with efforts to contain piracy as the only rhetoric which safeguards the business interests of big media companies and multinational corporations.

IJLT-CIS Law Essay Competition

Pranesh Prakash — Wed, 02 Dec 2009 02:33:07 +0530

The Indian Journal of Law and Technology (IJLT) is an annual law journal published by the Law and Technology Committee of the National Law School of India University, Bangalore. IJLT aims to provide a platform for promoting discussion on issues relating to the interface between law and technology, particularly from the perspective of the developing world.

The Centre for Internet and Society (CIS) is a leading research organisation that engages with issues of digital pluralism, public accountability and pedagogic practices, in relation to the field of Internet and Society, with special emphasis towards South-South dialogue and exchange. IJLT and CIS are proud to announce the 1st IJLT-CIS Annual Law Essay Competition 2009, which is a competition open to undergraduate law students across India. The competition seeks to encourage creative thinking and promote research and writing about crucial legal issues in the field of Information Technology and the Internet.

Themes

Criminality and Second Life: Dr. Jekyll and Mr. Hyde
Trademark and the Internet: Cybersquatting and the Google Adwords-Consim Controversy -- Reasonable Limits to Trademark Protection
3G Services and Spectrum Allocation: Fair Competition, Welfare and Freedom of Speech and Commerce on the Airwaves
Easier to Be Criminals: Judicial and Legislative Responses to Cyber Crime in India.

Judging

The winning law essays shall be determined through a blind review by a panel of eminent academicians in the field of law and technology.

Prizes

Ist Prize: Rs. 7500 and an internship at CIS

2nd Prize: Rs. 5000

3rd Prize: Rs. 4000

Please note that the terms of the above internship shall be decided by CIS on its own initiative, and as such shall not be negotiable. The winning law essay shall be considered for publication in the next issue of IJLT in accordance with the Editorial Policy of IJLT.

Eligibility

The competition is open to all undergraduate law students in any college/law school in India.

Submission Guidelines

The entries must be between 5000-7500 words inclusive of all footnotes. The entries that fall short of or exceed the above word limit shall be penalised.
Substantive footnoting is not permitted and shall be penalised. The use of endnotes or other citation methods is not permitted.
The entries should be accompanied by a 150-word abstract. The abstract is not counted towards the word limit.
All entries should be in Times New Roman, size 12, 1.5 line spacing. The footnotes used should be in Times New Roman, size 10, single line spacing.
The footnotes used should follow a uniform and complete system of citation. However, the use of the Harvard Blue Book (18th edition) system of citation is encouraged.
The entries must be submitted in the Microsoft Word format and with all identifying information removed from the text of the entries and the file properties. The covering e-mail should contain the name, e-mail address, postal address, institution, course and year of study of the author.
The entries must be submitted via e-mail to essay@ijlt.in.
The deadline for entries is 11:59 P.M., 23rd January, 2010.

For any clarifications, please send an e-mail to editorialboard@ijlt.in.

Access to online information and knowledge – advancing human rights and democracy

Radha Rao — Wed, 18 Nov 2009 17:30:00 +0530

Information and knowledge are crucial factors in human development. We are reminded of this constantly, from the “knowledge economy” we live in, to the emotional and financial power that information and communications technologies (ICTs) have over our lives. In the words of philosopher Francis Bacon, “Scientia potentia est” – knowledge itself is power. Present-day movements for access to knowledge and the right to information have their origins in this simple and arguably ancient idea. Despite a rich history and wide intellectual acceptance, the right to know is not universally granted, and the right to know on the internet is a particularly bitter struggle in many parts of the world.[1]

Information, knowledge and access are terms with a multiplicity of meaning. Even as they constitute an ambitious goal that disparate global actors work towards, it is worth considering how these terms are construed in relation to each other.[2]

“Information” in this context usually refers to government and institutionally held records. Legislation that mandates greater transparency is critical. The earliest example of this kind of legislation was implemented in Sweden as far back as the late 18th century, while countries such as South Africa and India have had theirs enacted as recently as 2000 and 2005 respectively. Freedom of information and the resulting power to make informed decisions are bedrocks of liberal democracy, essential tools for active citizen participation – and the foundation of dominant ideas of the better life, such as that of an open society.

“Knowledge” in its most instrumental sense usually refers to the elements of learning; to scholarly and artistic work and its tools. The access to knowledge movement [3] for instance, works on copyright law reform and the promulgation of open access. Access to knowledge in its present incarnation is a relatively new frame of reference compared to the right to information, which has been demanded for a longer period of time. But it is worth bearing in mind that the underlying theme has always existed and even been expressed, most notably in the hope and anxiety surrounding every disruptive technological shift, from the printing press to the internet.

The most frequently misunderstood term in this troika is, perhaps, “access”. The common interpretation of the term is its strict dictionary meaning, which is to use, to consume, to be allowed entry into or contact with. In relation to information and knowledge, however, and especially since the advent of the internet, access is just as much about production as it is about consumption. Knowledge is not something that Northern countries produce and Southern countries consume; it is a vast and porous domain that consists of formal and as yet unrecognised realms, all of which are growing and evolving. To read is a necessary precondition to being able to write; access, by analogy, implies entry not just into the world of knowledge consumption but also knowledge creation.

One manifestation of this fusion is Wikipedia, the encyclopaedia that is collaboratively produced online. Granted, many more people read Wikipedia than edit it. Nevertheless, for a growing global volunteer base, it is simultaneously a place to read and consume as well as edit and produce. In a similar vein, it is access to information that propels people around the world to intervene in public processes and change laws; without the information, there could be no change.

With regards to government information, it is important that not only are there mechanisms put in place that facilitate access to it, but also that these mechanisms work. The history of events leading up to the enactment of the Right to Information Act in India provides valuable lessons as to what the scope of government information should be, in how punitive measures can be implemented to guarantee that the process works, and, above all, as to how marginalised citizens can gain the space and the means to use the law to their advantage [4] To a large extent, the rich genealogy of the right to information has naturalised it as an obvious, just and urgent issue. Furthermore, it is an umbrella concern, covering as much as specific local contexts demand.

In contrast, the movement for access to knowledge works primarily on one crucial barrier, namely, intellectual property. For some, this focus is problematic. If, for instance, knowledge is imparted by education, then isn’t access just as much hampered by the lack of skilled teachers as restrictive intellectual property laws? This is certainly true, and yet, there are at least three good reasons why this narrow focus makes strategic sense.
One: education is a long-standing priority of societies and governments the world over, and there is an inestimably large group of individuals and institutions who work in the area. However, relatively few people are aware of the impact of intellectual property on access to educational material, and even fewer research it.
Two: the advent of the internet has created hitherto unprecedented opportunities in the knowledge domain, opportunities that could turn into unrealised potential if the application of intellectual property online is decided by copyright industries alone.
Three: knowledge is more than just formal education, and the internet provides limitless ways in which it can be redefined and multiplied. The overzealous application of intellectual property significantly limits the manner in which knowledge operates online.

A chain of events that unfolded in France over the last two years dramatically illustrates the level of threat faced by those seeking information and knowledge online. In 2008, at the insistence of the domestic recording industry, the French government began considering the enactment of a law designed to thwart online piracy. As industry forces pressed on and Nicholas Sarkozy added his support, the effort culminated in a bill that would be popularly known as HADOPI [5] after the enforcement agency it intended to create. HADOPI employed the three strikes principle. If an internet user was found to have committed an act of piracy, the copyright holder in question was entitled to warn the user through HADOPI. No details as to the exact nature of the copyright violation were required to be provided other than that a violation had occurred. After three such warnings, internet service providers (ISPs) in France would be mandated under HADOPI to bar the user from being allowed access to the internet for a period of up to one year.

The prospect of HADOPI had people up in arms. A broad coalition of internet users, consumers and their allies quickly assembled in France and elsewhere in the world. To users in France, it represented an immediate threat; to users elsewhere in the world, it represented the extent to which their online freedoms could be restricted in the future. Apart from the draconian nature of the punishment meted out by this bill, users were outraged that every kind of misdemeanour – whether deliberate, inadvertent, supposed or even mistaken – would be treated the same, with the benefit of doubt given to the copyright holder. [6]

Throughout 2009, the bill faced several setbacks, including a complete rejection by the French National Assembly. But its backers pushed on, eventually winning approval after modifications; until 10 June 2009, when the Constitutional Council of France struck down HADOPI on the grounds that it was inconsistent with the country’s Constitution – for going against freedom of expression and the presumption of innocence.

To involve infrastructure providers (ISPs) in enforcing private copyright disputes and suspend user privileges in the wake of alleged copyright violations, as HADOPI wished to do, was admittedly an extreme step. But there are other, less visibly harmful ways by which access to online information and knowledge is threatened and thwarted, and the problem is that some of these ways appear innocuous – though in fact any investigation of them would provide cause for serious alarm. Of the many concerns that exist, at least a few deserve our immediate attention:

Digital Rights Management (DRM) and Technological Protection Measures (TPMs);
copyright law provisions that affect online education, whether by distance or in a physical classroom setting, or in a library;
the lack of provisions that would meaningfully allow disabled learners and users (particularly the visually disabled) to access information and knowledge online; and
the extent to which users can usefully integrate online copyrighted material into their lives in a manner that would be considered fair.

A primary anxiety around copyrighted material in the online environment has been, on the part of copyright industries, how to regulate the flow of exchange. Previous to the advent of mass use of the internet, a song or a book was limited in its capacity for exchange by the physical, tangible form it came in. With the proliferation of digital material and peer-to-peer systems, however, the possibility for exchange is virtually boundless, and this makes content industries nervous – for it signals the end of an already outdated business model and the beginning of another. In return, industry retaliation has consisted of a strategy of lockdown. The tools of this strategy are DRM and TPMs – software that regulates what one can do with a digital file, or rather cannot do – and the vehicles by which these are legislated and proliferated around the world are a set of World Intellectual Property Organization (WIPO) agreements collectively known as the WIPO Internet Treaties.[7]

DRM is oblivious of the specific circumstances of the user, and is therefore unaware of both the user’s individual needs as well as her rights – for example, the nuances of copyright law in the country of the user’s residence. It doesn’t matter therefore that a user may be blind, or work for a public library, and that national copyright law in the country might specifically extend provisions to visually disabled people and libraries (for instance, by enabling permission-free format changes and reproductions for research). DRM will still operate on a one-size-fits-all model that supersedes national law. In some countries, fair dealing – or fair use – might allow for ways of personal consumption of copyrighted material that the DRM withdraws, resulting in a situation where the whims of a multinational industry render national law meaningless.

DRM is software that can be hacked – up to an extent. In this way, it is still possible for users to legitimately exercise their rights with and upon DRM-protected material. Yet, following the model of the Digital Millennium Copyright Act (DMCA) – the United States’ (US) interpretation of the WIPO Internet Treaties – many countries have legislated that such circumvention constitutes a copyright violation. In some cases this renders sections of their own copyright law redundant, and in effect, casts an unnecessarily heavy shroud over certain copyrighted material merely because it happens to be online. More worryingly, the WIPO Internet Treaties themselves do not ask of countries that anti-circumvention provisions apply even when a user is exercising a legitimate right such as fair use, and yet countries around the world have allowed their laws to imply so [8] because of bilateral persuasion, often from the US or the European Union, without a clear understanding of how this can stunt the potential of the internet within their borders.

It must be noted that copyright law in general – in most countries around the world [9] – generally does not do enough for access to knowledge. To the extent that the majority of the world learns not online but from the printed and spoken word, copyright law in its general application matters tremendously. When considering the potentially limiting aspects of copyright regulation online, one must keep in mind that many countries around the world do not have the kind of provisions that could be limited by new regulation of online material. In fact, most countries do not expressly facilitate distance learning, nor make all the provisions they can for access for the visually disabled, or freedom of information, or even education in general. [10] In part, this is because ever since the globalisation of intellectual property rights, including as recently as the founding of the World Trade Organization (WTO) in 1996 and the instituting of its Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), [11] there has been a distinct shift away from the minimum copyright protection demanded by this trade rule to a maximally protectionist approach.

In the majority of national circumstances today, copyright law is what is referred to as TRIPS-plus, which is to say, excessively protective of copyright-holders’ interests. The excess is overwhelmingly in favour of copyright industries and at the expense of users of copyrighted material. In such a situation, when copyright as it applies offline is already imbalanced, it is even harder to demand a balanced interpretation of copyright in the online space.

Finally, it hardly needs repeating that without a strong sovereign commitment to freedom of speech and information – in effect, a guarantee against censorship – any gains made in access rights stand to be nullified. And this commitment, worryingly, is by no means universally evident.

For one understanding of the right to know, see Stiglitz, J. (2009) On Liberty, the Right to Know, and Public Discourse: The Role of Transparency in Public Life, Oxford Amnesty Lecture, Oxford, UK, 27 January. siteresources. worldbank.org/NEWS/Resources/oxford-amnesty.pdf
For an understanding of how countries restrict access to the full potential of the internet, see Reporters Without Borders’ list of “Internet Enemies”: www.rsf.org/List-of-the-13-Internet-enemies.html
Naturally, all three words offer a wide scope of understanding. The descriptions that follow are only an attempt at clarifying a functional definition, not at fixing definitive meaning.
The movement for access to knowledge (sometimes abbreviated as A2K) refers to a loose grouping of individuals and institutions who work locally as well as on a potential international treaty on access to knowledge; an early draft is available at: www.cptech.org/a2k/a2k_treaty_may9.pdf
For an understanding of the concerns of a key Indian social movement, the Mazdoor Kisan Shakti Sangathan (MKSS), in the years leading up to the enactment of India’s Right to Information Act, see Sampat, P. and Dey, N. (2005) Bare Acts and Collective Explorations, in Narula, M. et al. (eds.) Sarai Reader 05: Bare Acts, Sarai, New Delhi. www.sarai.net/publications/readers/05-bare-acts/02_preeti.pdf
HADOPI: Haute Autorité pour la Diffusion des OEuvres et la Protection des Droits sur Internet (High Authority for the Diffusion of Works and the Protection of Rights on the Internet).
For one account of the story of HADOPI, see O’Brien, D. (2008) The Struggles of France’s Three Strikes Law, Electronic Frontier Foundation. www.eff.org/deeplinks/2008/05/struggles-frances-three-strikes-law
The WIPO Internet Treaties consist of the WIPO Copyright Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT).
For instance, in a recent eight-country study in Africa, it was found that Morocco, Kenya and Egypt all have anti-circumvention provisions enacted into law. See the ACA2K Briefing Paper for the WIPO Development Agenda meetings, April 2009: www.aca2k.org/attachments/180_ACA2K%20Briefing%20Paper1_WIPODevtAgenda-042009.pdf
Among several country studies, regional and international reports, one recent survey that confirms this finding is the Consumers International IP Watch List report for 2009, in which it is reported that in relation to access to knowledge, “no countries adequately took account of consumers’ interests.”
See:a2knetwork.org/sites/default/files/ip-watchlist09.pdf
Ibid.
TRIPs is currently the overarching international trade rule that governs the global sovereign application of intellectual property; for the full text of the TRIPs agreement, see: www.wto.org/english/tratop_e/trips_e/trips_e.htm

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At the end of the niche optical pirate

Siddharth Chadha — Thu, 29 Oct 2009 15:25:00 +0530

Getting to the National Market

Wading through Majestic Bus Stand, Flea Markets, Private Bus Stops and vehicles going around in circles, you could almost miss this board outside one of the shopping plazas. NATIONAL MARKET, the famed "pirate market" at the heart of the city. Most of the business here is illegal and the local police raid the thirty odd shops selling goods, which within the purview of any multilateral agreement under WIPO or TRIPS regime would be an infringement of copyright, at least once a month. The shops run shutter to shutter, each one five by four feet. Crowded with sellers and customers, all pirate markets typically smell the same. Pirated DVDs, DVD players, Chinese mobile phones and PDAs, even VHS players of the yore, smuggled MP3 music systems, fake Ray-Bans and Police sunglasses, gaming consoles. You name it, and National Market has it.

Meet the Pirate

Tall and sporting a stubble, Sooraj (name changed) is a Malayali who has been in the trade for over 8 years. "Earlier, I used to have the best English Movie collection ever. But now, its all going away. Most people have shifted from DVD's to Digital Storage and Bit Torrents", says Sooraj. A family comes across the counter. A middle aged man accompanied by two women in a burqua, one of them carrying a young baby boy in their hand. "Tom and Jerry!", says the man and Sooraj's helper brings out a carton full of animated Hollywood films. Finding Nemo, The Lion King, Madagascar, its all there. "No Tom and Jerry. This doesn't have Tom and Jerry", growls the stout customer. Sooraj jumps into the action, hunts out a DVD from a stack and puts it on the table. "Tom and Jerry Tales - 13 episodes", reads the the outside with a classic Tom chasing Jerry picture on the cover. Satisfied, the family puts it aside and goes on to explore other popular cartoon series. In the end, the man calls for Maharathi, a recent Bollywood flick. He looks at the cover intriguingly and I decide to butt in, "Amazing movie. Just saw it last week. Great plot." The deal is seized and after a bout of bargaining over the price. As the family dissolves into the market, Sooraj turns back and says to me, "A lot of customers bargain. I get a headache. And my shop is the first one in the market, inside people operate on margins of 5-10 rupees. That just ruins everything for us. They don't think of the amount of the risk involved."

The Business of Piracy

Sooraj explains to me how Chennai is the biggest market of the South. "Chennai is a sea. You will get everything there. Once you take a dive in that ocean, it's all there." When I ask him of the chain of distribution, he says, "No one will say that I print the covers of fake DVDs or I copy prints. For me, I just call my distributor and everything comes from Chennai. I don't ask beyond that. The stock comes in the price range of 25-35-40 Rupees. Now, there is only one quality of stock. The market is dying. No one has good stock. Earlier, we used to sell DVDs for Rs.70-80. Now, there is no demand. Even the wholesale business is at a low.'' I ask him, "So what are you going to do, now that soon DVDs will be gone?" Sooraj is not flustered. "We will shut this and start a new business," he says. I quietly step back, as another customer comes asking for audio CDs. He doesn't deal in those.

Enforcement Threat

When the customer is gone, I ask him, "How often does the police raid this market?" He smiles and replies, "Not often anymore. The business is almost dead. But yes, they come sometimes. Then you are taken away and a case ensues." I decide to ask him candidly, "How many times have you been booked?" He smiles again. "5-7 times. I have a few cases pending, dates that I have to go and visit the court. They arrest you for a day but that's all they can do. After all this is not a big crime." He continues dealing with customers who have various demands for music and films. Some he sells to, he guides others to the inside shops. "I sell about a 1000 DVDs everyday. Earlier, the figure used to be much higher. Mostly English. Hindi, Tamil and Telugu too. No Kannada," he volunteers. I probe further, "Why no Kannada?" He says that that he supports protection for their own industry. "And the market price for Kannada films is appropriate. Some are Rupees 60, 90, 110. That's reasonable. We do not need to pirate it."

I ask him for Tamil titles. He asked if I wanted Ghajani. “I saw it when it released. Give me something that's worth watching.” He picks out two. Saroja and Subramaniya Puram. He doesn't make a profit in this deal but something tells me that he is happy to spread the love of good films. "Can I click a picture?" He refuses, saying it would not be a good idea. I shake his hand. Until next time.

World IT Forum 2009

Pranesh Prakash — Tue, 08 Sep 2009 12:10:00 +0530

At the recently-concluded World IT Forum, 2009, the Commission on Social, Ethical, and Legal Issues organized three sessions. One on 'Digital Intellectual Property Rights and Digitisation of Divides', a second on 'Employment of ICTs Toward Effective Realization of Millenium Development Goals' and a third on 'E-Governance and Biometrics: Evaluating Opportunities and Threats'. The individual sessions had K.M. Gopakumar of Third World Network ("Digital Technology and Access to Knowledge: Policy Space for the Third World), Naveen Thayyil ("Digital IPRs: Implications for Divides in New and Emerging Biotechnologies"), Anita Gurumurthy of IT for Change,("Reimagining the Digital Opportunity" ), Chat Garcia Ramilo of APC Women's Networking Support Programme ("Gender Dimensions of ICT Development"), Ajit Narayanan of AUT ("What Does Your Passport Say About You?"), Sohel Iqbal of Korea University ("Obligation and SWOT of E-Governance in Developing Countries") and Dinh Ngoc Vuong of the Institute of Lexicography and Encyclopedia of Vietnam ("Legal Aspects and Role of E-Governance in Vietnamese Reforms") speaking. As part of the first session, I spoke on how IPR as a property regime leads to mischaracterisation, and how IPR is a foreign system for developing countries.

Amongst the many reasons that IPR should not be regarded in the same light as property (even though that conceptual framework is supported by the likes of Eugene Volokh) are to be found in David Levine's rejoinder to Volokh that IPR are analogous to property, along with the two rejoinders by Larry Solum. Volokh's main point is that not only control of use and excludability, but incentives to create are also part of property law, for both tangible property and intangible "property". This is questioned not only by David Levine and Larry Solum, but by Mark Lemley, Wendy Gordon, and a host of other scholars. Three simple points to note: (1) IP deals with internalisation of positive externalities, which is not something we normally associate with property law -- thus, IP actually does not give me control over my 'property', but over yours; (2) IP deals with a truly non-exhaustable, non-rivalrous good -- ideas -- which, as shown in the articles linked above, are not suited to being governed by property regimes; (3) IP goes much beyond what property law does with tangible property, since it not only governs the sale of IP and exclusion of others from my IP, but also governs the subsequent usage of IP.

Another relevant consideration is the way that IP law has been spread through the globe through means like colonisation and modern-day unbalanced trade treaties.  India got its first copyright law in 1914 and signed the Berne Convention in 1928, much before its independence. The TRIPS Agreement of 1995 mandated things like product patents for pharma products for all countries, even though an industrialised Western country like Spain only started recognizing them in 1992, and even though Italy, which was then the fifth largest manufacturer of pharmaceutical products, was forced to introduce product patents by a petition of foreign pharma companies in 1978. The benefits of product patents for pharma products have not been empirically proved, but the harms caused by patents to production of newer medicines have been well documented. Given these, it is imperative that developing countries push back against IP expansionism that is knocking on their doors through instruments like Free Trade Agreements.

Fallacies, Lies, and Video Pirates

Pranesh Prakash — Mon, 24 Aug 2009 17:40:00 +0530

The Confederation of Indian Industry (CII) organized its third annual conference on counterfeiting and piracy, with support from the United States Embassy and the Quality Brands Protection Committee of China (a body comprising more than 80 multinational companies). Last week we criticised the conference in an open letter. This week, we examine a few of the recurring themes that came up at the conference.

Something being substandard is not the same as something being counterfeit.

This was a mistake made by many whenever they invoked 'counterfeit' in the sense of something that is violative of one's patent and trademark rights. The Indian Drugs and Cosmetics Act itself distinguishes between 'misbranded', 'adulterated', and 'spurious' drugs, thus recognizing that something that is made without proper authorization from rights owners isn't necessarily of a bad quality. Indeed, this was substantiated by an audience member, a lawyer from Dr. Reddy's Lab. She spoke of a mandi in Agra where they seized medicines being sold under the Dr. Reddy's name, but produced by local manufacturers. Upon lab testing, it turned out, much to their surprise, that the medicines were of the highest quality and were not substandard. Similarly, many large companies including trusted FMCG companies like Hindustan Unilever and ITC are upbraided by authorities for violations of the Drugs and Cosmetics Act (for the cosmetics they produce) as well as the Prevention of Food Adulteration Act. Thus, even legitimate businesses can produce substandard products. Thus, a product can be unauthorized but not substandard, just as a product can be substandard but not counterfeit.

This distinction becomes very important when we talk about patents, and especially drug patents. A generic drug is by definition identical or within an acceptable bio-equivalent range to the brand name counterpart with respect to pharmacokinetic and pharmacodynamic properties. Thus, this entire category of high-quality drugs is often sought to be made illegal or counterfeit by large pharma companies. Some countries like Kenya have capitulated. But so far the World Health Assembly has been forced by developing countries to keep the issue of substandard medicines separate from patent-bypassing medicines.

The industry, for all their talk about "out of the box" thinking on the issue, still only consider metrics such the number of piracy raids conducted as measures of success. A question was put forth by Manisha Shridhar of the Intellectual Property & Trade Unit of the World Health Organization upon learning of the quality of the drugs seized at the Agra mandi: Why not cut a licensing deal with those manufacturers, who obviously have excellent production facilities? That kind of thinking, which helped HMV in India in the 1980s, and copying innovative features from video pirates and pricing their products competitively has helped an Indian company, Moserbaer, do extremely well.

Counterfeiters and pirates are not always seeking to fool consumers.

Only lawyers hired by the industry would think that a consumer aspiring towards a Rolex watch would actually think that the one he purchased off the streets for one-hundredth the original's price was in fact original. Street-side DVD hawkers are not thought by the general public to be selling original wares. Still, despite knowing the difference between the original and the fake, consumers many times opt for the latter.

Having said that, counterfeiting, by using someone else's trademark and trying to pass off fake goods as real ones, is quite obviously wrong. It harms customers, and it harms the manufacturers. Thus, a distinction deserves to be made here between the counterfeiters who try to deceive consumers (for instance by copying authenticity marks, like holograms, etc.) and those who are just providing them with highly cheaper alternatives (pirated DVDs, etc.). In this light, it is also important here to distinguish between counterfeiting, traditionally taken to be trademark violation, and piracy, traditionally taken to be a violation of international law, but now generally meaning a large-scale violation of copyright law. While the former can lead to consumer confusion, the latter scarcely ever does. This is ignored by industry people who evoke the image of the consumer quite often, but only when it helps them, and not in any meaningful manner. They negate consumer choice when it comes to consciously purchasing pirated goods, and consumer freedoms when it comes to usage of copyrighted materials.

While commercial film piracy funds terrorists, so does pretty much every business activity.

A favourite of the MPAA (and by association, the MPA) is the RAND report on Film Piracy and its Connection to Organized Crime and Terrorism. This report, which was funded by the MPAA, predictably concludes that film piracy funds organized crime and terrorism. Even if we are to believe its findings wholesale, it leaves us wondering whether all business activities from which terrorists derive funds should be banned.

In India, there is a substantiated link between organized crime and film and music production, and terrorists have been said to make money off the stock market. If the MPA's arguments are taken to their logical conclusions, then film production and equity trading should also be prosecuted. Furthermore, while the mafia and terrorists are the ostensible targets, the laws that are brought about to tackle it affect poor roadside vendors and non-commercial online file sharers. To tackle the funding of terrorists, roadside piracy shouldn't become the target just as film production per se shouldn't. The invocation of the RAND report is thus only meant for rhetorical effect, as it is hard to find logic in there.

"To copy without authorization is to steal", the death penalty, and drug peddling.

At the conference, Dominic Keating of the US Embassy pointed out that "to copy without authorization is to steal" and David Brener of US Customs and Border Protection kept emphasising, on at least two occasions, that "drug peddling merits an automatic death sentence in many countries". There are numerous arguments one can make to show the lack of thought in the former. One could point out that 'stealing' and 'theft' are things that happen to tangible property, and that not only is copyright not tangible, but it is barely property. Copying without authorization creates one more of what existed, without depriving the authorizer (usually a corporation) of its original. This goes against our notion of 'stealing'. If the argument is to be shifted to the terrain of control over one's property/copyright, Mark Lemley in an illuminative article shows how the economic theories behind externalities in property and copyright are vastly different, and that complete control over either has never been, nor should it ever be, an aim of the law. Simply put, someone free riding on your property leaves you worse off than earlier, while someone free riding on your copyright usually doesn't.

One could also point out that 'stealing' is endemic in activities involving human creativity. T.S. Eliot notes that "Immature poets imitate; mature poets steal; bad poets deface what they take, and good poets make it into something better, or at least something different". He does not even consider the possibility that artistic borrowing, whether by imitation or by 'stealing' does not happen. Even Y.S. Rajan, Principal Adviser to CII recognized this when during the conference he noted that "imitation and innovation have an interesting and intertwining philosophical history". If we are to take Mr. Keating's admonishment seriously, we would indeed have a very illustrious list of thieves on our hands, including the Walt Disney Corporation, William Shakespeare, Vladamir Nabokov, Public Enemy, and pretty much every creative person who has ever lived. Books can be written about this (and indeed, numerous books have been), so we shall not dwell on this issue.

Mr. Brener's repeatedly spoke of how drug peddling attracts death penalty in many countries (though in neither the US nor in India has anyone ever received capital punishment for drug peddling), but he also clarified that he is not advocating for the death penalty for copyright violations. That made one wonder why he was bringing up the death penalty at all. He also made the dubious, non-substantiated claim (noting it as "true fact") that pirating movies is more profitable than selling heroin. This claim appears in an article about a report produced by the Australian Federation Against Counterfeit Theft (AFACT), but the original report is nowhere to be found. The article about the AFACT report also claims that the pirates are using their illicit profits promote drug smuggling. The seeming contradiction of film pirates investing in something that is riskier and less profitable doesn't seem to have caught the eye of the writers. One version of the 'drugs are less profitable than pirated DVDs' claim (with marijuana taking heroin's place) was debunked on the Commons Law mailing list. Pirated DVDs are sold for a fraction of the cost of the original. It would be obvious to anyone that DVDs that are typically sold for Rs.30-50, where the cost of manufacture alone may be estimable to be around Rs. 10, cannot be more profitable than heroin peddling. That apart, most online file sharing (deemed to be "piracy") is non-commercial. Thus the question of profit does not really arise. Still, for the industry, absence of a profit is equal to a loss.

Thus, the rhetoric of crime, and that too heinous crime, is continually used, despite its being completely inapposite. Why does used to try to make IP enforcement a matter of state concern, rather than a matter of private, and civil, interest. This way, illegitimate statistics and factoids are used to make individual file-sharers who earn no money get lengthy prison sentences. This and other ways in which IP enforcement has expanded are carefully documented in this paper by Susan Sell.

Repeating false 'statistics' does not make them true.

Again, we were subjected to a number of dubious claims during the conference: If only counterfeiting and piracy were eliminated, India's fiscal deficit would disappear; the Indian entertainment industry loses 16000 crore (USD 4 billion) yearly to piracy; 820,000 direct jobs are lost due to film piracy; software piracy costs the industry USD 2.7 billion annually, etc. These reports' methodologies have been thorougly discredited. Even The Economist, a very conservative and pro-industry newspaper, believes that the BSA-IDC annual reports on software piracy are utterly distorted. Similarly, in the U.S., the figure of 750,000 jobs (around 8% of the U.S. unemployed in 2008) being lost due to piracy were touted by everyone from the Department of Commerce, the Chamber of Commerce, U.S. Border and Customs Protection, and the MPAA, RIAA, and BSA. The amount of money lost each year in the U.S. due to IP infringement has been estimated to be between USD 200-250 billion (that's more than the combined 2005 gross domestic revenues of the movie, music, software, and video game industries). In a lengthy piece in Ars Technica, Julian Sanchez traces back the history of both these figures, and shows how they are just large numbers used for lobbying, and are not based on actual studies. The industry-commissioned Ernst & Young report ("The Effects of Counterfeiting and Piracy on India's Entertainment Industry") was never made available to the public at large, thereby making it impossible to judge the methodological soundness of the survey and the veracity of the figures.

IP expansion and more stringent enforcement is counter-productive.

Chander Mohan Lall, copyright lawyer to various film studios (including Warner Bros.) in India, used a number of short film clips in presentation during the conference. Upon being questioned about it, he admitted that he did not have permissions of the copyright holders, but claimed that his use fell under "the education exception" in Indian copyright law. While I wish he were correct (because what he was doing was indeed educational use), as per the law he is wrong. Section 52(1)(i) of the Copyright Act only exempts educational usage of cinematograph film recordings when "audience is limited to such staff and students [of an educational institution], the parents and guardians of the students and persons directly connected with the activities of the institution". While there are other arguments he could seek to use to make his usage of the film clilps non-infringing, being excepted by the educational fair dealings clauses isn't one of them. Thus, more stringent enforcement of IP rights actually engenders such unauthorized, but perfectly legitimate copying and communication to the public such as that done by Mr. Lall.

Another way in which IP enforcement is being sought to be increased is by way of the so-called Goonda Acts. These are generally statutes aimed at criminals and lumpen elements in society. The Maharastra version, the Maharashtra Prevention of Dangerous Activities of Slumlords, Bootleggers, Drug-Offenders and Dangerous Persons Act, 1981, just became the Maharashtra Prevention of Dangerous Activities of Slumlords, Bootleggers, Drug-Offenders, Dangerous Persons and Video Pirates Act. The term "video pirate" is very widely defined, to include any copyright infringement-chargesheeter who is "engaged or is making preparations for engaging in any of his activities as a video pirates, which affect adversely or likely to affect adversely, the maintenance of public order". Public order is deemed to be disturbed by "producing and distributing pirated copies of music or film products, thereby resulting in a loss of confidence in administration". Thus video pirates can possibly be interpreted to include individual sitting at home and using P2P networks to share films. The only requirement is that they should have had a chargesheet lodged against them previously -- they needn't even have been convicted; being chargesheeted suffices. Thus, non-commercial activities of file-sharing are equated to bootleggers and drug smugglers, and preventive detention (an anti-civil rights relic of India's colonial past) is applicable to them.

IP expansion is happening without the ostensible justifications for IP being kept in mind. That Tirupathi ladoos are going to get GI (geographical indicator) protection was announced at the conference with great pride. Geographical indicators are used to protect consumer interests, to ensure that no one outside a particular region (Champagne) can lay claim to be producing that product (Champagne) if the production of that product is intrinsically linked to special features found in that region (climate, etc.). However, no devout person would want to purchase anything advertised as "Tirupathi ladoo" if it were produced outside the Venkateswara temple at Tirupathi, thus the question of consumer confusion does not arise. What if someone malignantly advertises something as Tirupathi ladoo and claims it was made in Tirupathi (and not just that it tastes like the ladoo made there)? Such a person can be taken to task for deceptive advertising, and there is no need for something to have IP protection to do so. This represents a senseless expansionism of IP. It is now IP for IP's sake.

One of the speakers, Mr. V.N. Deshmukh, who though pro-stringent IP enforcement, astutely noted that, "When local demand is not met, they [consumers] turn to counterfeiters and pirates." Local demand can be unsatisfied because of lack of supply, or because the supply is overpriced, or because the supply is not easy to access, or because what is supplied is inferior to what is demanded. At the end of the day, as William Patry, Google's lead counsel, has noted, what companies sell to the public are products and services, and not IP. It would thus be wise for businesses to be innovative and compete rather than trying to extend their monopolies and engaging in rent-seeking behaviour that is economical harmful to consumers. They would also do well to remember that IP is not only a product but an input as well, so they are ultimately consumers themselves. All the harsher laws and enforcement mechanisms that they push for right now will have unintended consequences, and come to affect them adversely.

Civil Society Letter Against TRIPS-Plus IP Enforcement

Pranesh Prakash — Tue, 18 Aug 2009 12:20:00 +0530

An Open Letter to the President of Confederation of Indian Industry (CII) on the Third International Conference on Counterfeiting & Piracy

To
Mr. Venu Srinivasan
The President
Confederation of Indian Industry (CII)
The Mantosh Sondhi Centre, 23,
Institutional Area, Lodi Road
New Delhi - 110 003

Dear Mr. Srinivasan,

We understand that Confederation of Indian Industry (CII) is hosting the Third International Conference on Counterfeiting and Piracy from 19-20th August 2009 in partnership with the Embassy of the United States and the Quality Brand Protection Committee (QBPC), China. As stated in the invitation letter the primary objectives of the conference are: 1) to initiate coordinated action for cross border enforcement; 2) to highlight the importance of protection of intellectual property rights (IPRs); 3) to combat the growing threat of piracy and counterfeiting; 4) to facilitate a global meeting of customs officials across the globe; 5) to recommend the creation and setting up of a governmental “National Brand Protection” group; 6) to serve as a forum to discuss legal guidelines related to the prosecution of IPR infringement and to eliminate ‘loopholes’ within the existing laws; and 7) to strengthen cooperation between enforcement agencies and chalk out strategies for enforcement agencies a industry action both at national & international level. We also understand that this international conference is part of CII Intellectual Property Division’s special initiative on enforcement of IPRs. As part of this special initiative CII aims at “engaging government to create conducive legislative measures, policy levels reform and impressing [upon them] to adopt stringent enforcement initiatives and exemplary punitive and monetary measures to further safeguard and secure the interest of industry”. CII also wants to “create a global partnership to synergise efforts of international community and to support and participate in India's efforts in combating counterfeiting both at domestic and international levels”. We, the undersigned, representing various civil society organizations in India, write this letter to express our strong reservation on the conference as well as on CII’s special initiative on IP enforcement. Without raising any question on CII’s right to organize events we would like to convey the following concerns with regard to the conference and CII’s initiative on IP enforcement.

Many of the above mentioned objectives of the conference and the special initiative are directed towards the enhancement of intellectual property (IP) standards like coordinated action on border measures, common guidelines for prosecution of IP infringement, exemplary punitive and monetary measures, etc. In other words, enhancement of IP standards means using more public money to protect private rights; very often protecting the monopoly over intangible property rights of multi-national corporations (MNCs).

As you may be aware, MNCs and their developed country hosts are currently engaged in the implementation of a multi-pronged strategy to enhance IP enforcement standards.[1] This is similar to the MNC’s initiatives in the mid 80s to enhance international IP protection, which resulted in the Agreement on Trade-Related aspects of Intellectual Property Rights (TRIPS). Unlike the 80s, now MNCs and developed countries use multiple forums to pursue the objective of enhancement of IP enforcement standards. Some developed countries have unilaterally enhanced their IP enforcement strategy to force other countries, especially developing countries, to accept the same through various multilateral organizations, namely the World Customs Organization (WCO), World Health Organization (WHO), Universal Postal Union (UPU), Interpol, WIPO and WTO. Developed countries are also using Free Trade Agreements (FTAs), Bilateral Agreements on IP Enforcements as well as financing lobbyist studies, conferences and policy recommendations to impose higher IP enforcement standards. These efforts for the enhancement of IP enforcement standards are a matter of grave concern for the people of developing countries and their governments. By partnering with the US Embassy and Quality Brand Protection Committee of China (QBPC)[2] in the organization of this conference, CII is allowing itself to play in the hands of MNCs and some developed countries, whose interests do not match with that of India industries and that of the Indian people.

As you are aware, the Government of India is taking a very strong position in resisting enhancement of IP enforcement standards in all the multilateral forums. India along with like-minded developing countries successfully pushed back TRIPS-plus[3] IP enforcement agenda at WCO and WHO. India is also trying its level best to convince other developing countries the need to stick to TRIPS-compliant standards rather than adopting TRIPS-plus enforcement standards. In the wake of the controversial generic drug seizures by EU customs authorities, India has also raised the issue of TRIPS-plus IP enforcement standards contained in the EU IP Enforcement Directive at least two times at the TRIPS Council.[4] The Indian political leadership has unequivocally raised its concern over the enhancement of IP enforcement standards at other forums also.[5] In adopting this stance, the Government of India has cited public interest as well as the operating freedom of Indian industry as its justifications.[6] By partnering at this vital stage with an MNC lobby group and a heeding to developed country governments, CII is not acting in furtherance of the legitimate public interests of Indian domestic industry and the Indian people.

It is a well-evidenced fact that TRIPS-plus enforcement standards adversely impact not only legitimate trade between nations (as shown by the EU seizures) but also the day-to-day life of millions of people especially in India and other developing countries.[7] Unfounded IP enforcement measures would adversely impact access to life saving medicines and educational materials. Thus the IP enforcement measures also have the potential to deny right to development to people in the global South. Hence an organization like CII should not view IP as only a business tool but should look at the larger scheme of things especially in the social and economic realities of India. In fact, by promoting enhancement of IP enforcement standards CII is advocating a policy, which would violate the right to health, the right to knowledge, as also the right to development.

We would also like to point out that Indian pharmaceutical industry is one of the victims of TRIPS-plus IP enforcement standards. In 2008 alone, 17 consignments[8] were seized in transit at Europe using the EU Directive on IP Enforcement, which allows seizure of goods in transit.[9] These consignments were being exported from developing countries (such as India and Brazil) to other developing countries, and the contents of the consignments are perfectly legal in both the exporting as well as the importing nations. These highly questionable seizures resulted in the crisis of health programmes as it resulted in delays in and prohibitive costs of access to life-saving medicines in developing countries of Africa and Latin America. CII can barely claim to be representative of the interests of Indian industry if it ignores such episodes and partners with self-promoting MNCs and developed countries’ governments to advocate for the enhancement of IP enforcement standards.

In the light of above-mentioned issues, we request you to consider the following:

Rejecting the TRIPS-plus enforcement agenda in toto. We demand CII, Federation of Indian Chambers of Commerce and Industry (FICCI), Associated Chambers of Commerce and Industry(ASSOCHAM) and other Indian business associations to reject any and all attempts of bringing in a TRIPS-plus enforcement agenda in India, in the interests of Indian industry and the Indian people.
Completely disengaging from any collaborative efforts with foreign institutions to further TRIPS-plus standards of IP protection in India and also abstaining from any engagements on the anti-counterfeiting efforts with foreign agencies. CII should attempt to engage with domestic institutions and build national consensus before engaging with foreign institutions with the claim of representatives of Indian industry.
Taking necessary proactive steps to safeguard the interests of access to medicine and access to knowledge along with interest of the Indian domestic industry.
Participating in a more creative discussion on IP and development rather than simply accepting the simplistic and largely discredited view that stronger IP regime leads to more innovation and is a necessary condition for socio-economic development.

CC:
Shri Anjan Das
Senior Director & Head
Technology, Innovation, IPR & Life Sciences
Confederation of Indian Industry (CII)
Plot No. 249-F, Sector-18; Udyog Vihar, Phase-IV,
Gurgaon-122015, Haryana

Shri. P. Chidambaram
Minister
Ministry of Home Affairs
Government of India
North Block, Central Secretariat
New Delhi 110001

Shri G. K. Pillai
Secretary Justice
Department of Justice
Ministry of Home Affairs
Government of India
North Block, Central Secretariat
New Delhi 110001

Shri Naresh Dayal,
Secretary, Dept. of Health and Family Welfare
Ministry of Health and Family Welfare
Government of India
149-A, Nirman Bhawan, New Delhi – 110 011

Shri Ajay Shankar
Secretary
Department Of Industrial Policy & Promotion
Ministry of Commerce and Industry
Room 153, Udyog Bhavan,
New Delhi – 110 011

Signatories to this letter

Centre for Trade and Development (Centad), New Delhi
Centre for Internet and Society, Bangalore
National Working Group on Patent Laws, New Delhi
Lawyers Collective (HIV/AIDS Unit)
All India Drug Action Network (AIDAN)
International Treatment Preparedness Coalition (ITPC), India
Consumers Association of India, Chennai
IndoJuris Law Offices, Chennai
All Indian People’s Science Network, New Delhi
Delhi Science Forum
Alternative Law Forum, Bangalore
Knowledge Commons
Moving Republic
IT for Change
Centre for Health and Social Justice(CHSJ), New Delhi
Navdanya, New Delhi
Support for Advocacy and Training to Health Initiatives (SATHI)
Centre for Enquiry Into Health and Allied Themes (CEHAT)
Initiative for Health Equity & Society
International Peoples Health Council (South Asia)
Drug Action Forum – Dharwad, Karnataka
Dr. Mira Shiva, New Delhi
Tina Kuriakose, PhD Scholar, Jawaharlal Nehru University, New Delhi
Dr Gopal Dabade, Dharwad
Dinesh Abrol, Scientist NISTADS, CSIR, New Delhi
Madhavi Rahirkar, Lawyer/Consultant, Pune
Gautam John, Bangalore
Achal Prabhala, Bangalore

Endnotes

[1] See Susan K Sell, The Global IP Upward Ratchet, Anti-counterfeiting and Piracy Enforcement Efforts: The State of Play.
[2] QBPC barely qualifies as a representative of Chinese interest, as it comprises more than 180 multinational member companies.
[3] ‘TRIPS-plus’ refers to any protection of IPRs that surpasses the standards and requirements spelt out in WTO-TRIPS provisions.
[4] See Jonathan Lyn, India Brazil raise EU drug Seizures issue at WTO, available at http://www.livemint.com/2009/02/04232721/India-Brazil-raise-EU-drug-se.html
[5] Indian Minister of State for External Affairs Broaches Seizures of Generics at ECOSOC, available at http://www.keionline.org/blogs/2009/07/08/india-ecosoc-seizures/#more-2404
[6] Indian Commerce Secretary’s Speech to the African Community Ambassadors. available at http://www.centad.org/focus_77.asp.
[7] For two very recent examples, see Intellectual Property Enforcement: International Perspectives, Xuan Li & Carlos Correa (eds.) (2009); Anand Grover, Report of the Special Rapporteur on the Right of Everyone to the Enjoyment of the Highest Attainable Standard of Physical and Mental Health, A/HRC/11/12 (2009).
[8] Jyoti Datta, 16 out of 17 drug consignment seizures in the Dutch were from India available at http://www.thehindubusinessline.com/2009/06/08/stories/2009060851700300.htm
[9] The EC Regulation No 1383/2003 allows for seizure of goods in transit.

Emerging Bit Torrent Trends in India

Siddharth Chadha — Mon, 15 Jun 2009 14:05:00 +0530

From Kazaa to The Pirate Bay

Little did the world of the VHS era realize in its time where the future of pirate technologies were heading to. The world's favourite music and films were quickly transferred onto optical discs as magnetic tapes went obsolete a few years before the end of the last century. Internet was soon to become the nemesis of discs, which were bulky to store and scratched easily. The first tryst with peer to peer technologies on networks sent shivers down the spine of Jack Valenti and the Motion Pictures Association of America. The speed of dissemination and distribution of content over the Internet was something the world had never seen before. The lawsuits against peer to peer networks such as Kaaza and Limewire ran into millions of dollars. Websites were shut down, but time and progress of technology could never be reversed. Bit Torrent soon became the most common protocol to transfer content over the Internet. Bit Torrent meta files themselves do not store copyrighted data. Hence, Bit Torrent itself is not illegal. However, its use to make copies of copyrighted material that contravenes laws in many countries has created many controversies, including the now famous Pirate Bay Trial in Sweden. The popularity of torrents though is not specific to the Western world. The strength of the Internet lies in its ability to generate content from any corner of the world which is then spread across the world through a web of distribution reaching many computers and granting them access to the content simultaneously.

Desi content on Torrent Networks

Desi : A term derived from Sanskrit, meaning region, province or country. It now refers to the people and culture of South Asian Diaspora.

On the most popular Bit Torrent search engines, torrentz.com, Hindi and Hindi movies are permanent search tags. Often, one would even see the names of popular Bollywood releases such as Dev D, or at the time of writing this blog entry, Telegu Films, prominently displayed on the site. Bollywood and other content created in India and the rest of the subcontinent is driving the cyberspace. With a huge diaspora spread across every part of the world and increasing Internet penetration alongside rising broadband speeds in urban India, the demand for Desi content on torrent networks is on the rise. Websites such as desitorrents.com and dctorrent.com are two torrent search engines that are popular amongst Internet users and cater exclusively to Desi content. A closer look at the content on these sites reveal that the most popular content on these torrent networks are television shows, cricket matches, Bollywood movies, music and regional cinema. Torrent scenes such as AXXO are not unique to Hollywood upload alone. Desi content has its own torrent scenes, responsible for uploading torrent trackers, as soon as the content is out in the public. Users identifying themselves as Jay, Captain Jack or Gangadhin are busy uploading these files on the Desi networks.

Downloaders Demographic

Online since January 2004 and an Internet traffic rank of 7,302, an average visitor spends 8.3 minutes on the Desi Torrents site everyday. Relative to the general Internet population, the website has the highest number of male visitors in the age group of 18 to 34.

Most browsers are at least Graduate School educated who prefer to access the website from home. In comparison, Desi Club Torrents, which is a free website has a younger representative web demographic with males between 18 to 24 years of age being the most prominent visitors. According to the data, it is also revealed that the website has a higher ratio of visitors who have not attended Graduate School but still have attended some college for education

Impact on the Traditional Markets

In most cases, the popularity of Bollywood films in cinema halls and on torrent sites seems to be linked. For example, the most successful Bollywood film of 2008, Ghajini, which ended up raking Rs. 200 crores on the box office, is also one of the most downloaded films on Bit Torrent Networks. However, for the Pirate selling DVD's of latest films, this is not great news. A majority of their customers have migrated to downloading films on the Internet using Peer to Peer technologies. The upper middle-class niche film watching audiences, have been the fastest to acquire computers and get on the Internet. Increasing broadband speeds have ensured that this segment of consumer transitions away from the traditional 'on the corner' pirate shop.

Are you Game?

Siddharth Chadha — Sat, 06 Jun 2009 00:00:00 +0530

Grey Markets

At the grey markets of Bangalore, aka SJ Road and National Market, smuggled Sony Playstation 3 and XBOX 360's sit pretty on the shelves of vendors, willing to bargain up to 2/3rd the price offered at the showroom, to the interested customer. Alongside, you would find a huge range of pirated discs of games to play on your console. According to Vishwa (name changed), a grey market dealer, these smuggled consoles make their way to the markets via South East Asia. “ The games are often procured locally using Internet to download files and burn them en mass on cheap DVD's, or sourced from the biggest pirate market in this part of the world, Chennai. Youngsters come and purchase them because they are hooked and we give it to them for cheap,” says the burly dealer who makes a living on the increasing appetite for games among the city youngsters. While customers use pirated discs to load the game, piracy also helps the game become rampantly popular. They often need to go online and pay to play these games beyond a certain difficulty level. The more the game is pirated on disc, more the players paying for it online. Online Gaming portals, such as Zappak offer scratch cards and coupons starting from Rs. 100. These can be used for gaming online from home or used at Cyber Cafe's, a popular haunt for gamers.

Size of the Gaming Market

It is not only the grey market, but the sale of gaming consoles by Sony, Microsoft 360 and Nintendo Wii, have all been on the rise in the past 2-3 years. In the month of August 2009, the price of a Playstation 3 was pegged under $300 in US and UK. Consequently it was made available for under Rs.20,000 in the Indian market. There are 4.5 Lakh PS2 users, 1.35 Lakh PSP users and over 50,000 PS3 users in country. Sony now holds 85% share in the console market in India. According to Jacob Cherian, Editor of Skoar, India's only gaming magazine, the only way for this youth driven market is to go up. “While there is no estimate to assess how big the gaming industry in India is, with falling prices of consoles and games, there is a definite scope of growth and consolidation in the Industry. If the distributors of games can counter piracy and maintain their profits, the gaming culture will explode.” Plagued by losses due to grey markets and piracy, the distributors are using competitive pricing to increase volumes. The release of Grand Auto Theft 4 in 2008 has been a striking example. The hugely anticipated game was released in India for Rs. 500 and went on to sell 100,000 copies. This is believed to be the most sold disc in the gaming industry in India. Increasing popularity of online real time gaming is also increasing the scope of expansion of the formal market.

Stepping Stone to Digital Ecosystem

Microsoft's Bill Gates sees the Xbox console at the center of the future digital ecosystem, rather than at its periphery. The gaming console is a general purpose computer and not just a gaming device. For the manufactures at Microsoft and Sony, it is about strategically being in the living room. The ability of the consoles is to make wireless connections with the PC, serve as an Internet browsing machine and also, as a Blu Ray or High Definition disc player, all in the comfort of your living room. But before this is realized there are bigger challenges ahead for the gaming market. Piracy and Intellectual Property issues are looming large for manufactures and distributors, Manufactures are already working to create games for the Indian consumers that adhere to the local culture and cater to the unfamiliar local gaming habits. The innovative publishers with the right approach towards Indian youth will end up yielding great results.

LINKS

http://www.techtree.com/India/News/Sony_announces_PS3_Slim_for_299/551-105648-585.html

http://www.accessmylibrary.com/article-1G1-135681324/mobile-gaming-enthusiasts-view.html

Consumers International IP Watch List 2009

Pranesh Prakash — Fri, 05 Jun 2009 14:55:00 +0530

Every year the Office of the United States Trade Representative (USTR) publishes a report known as the Special 301 Report, documenting IP regimes in various countries, and publishing a list of those countries which do not afford 'adequate and effective' protection for US intellectual property. This year Consumers International, which set up the A2K Network, published a counter-report, the IP Watch List 2009 for which the India report [pdf here] was prepared by the Centre for Internet and Society. While the Special 301 Report labels India a "Priority Watch List" country (meaning that it has an IP regime least conducive to the trade interests of the United States), the Consumers International report holds India to have the most consumer-friendly and balanced IP regulation amongst the sixteen countries surveyed. The CI report lambasts the USTR's attempts to make countries comply with unreasonable demands which go over and above the countries' international obligations. For instance, the WIPO Internet Treaties, which have been criticised by many, is sought to be imposed on countries like Israel, India, and Canada. Prof. Michael Geist of the University of Ottawa even notes that piracy levels and accession to the WCT and WPPT do not seem to be correlated: "In fact, only five countries that have ratified the WIPO Internet treaties have software piracy rates lower than Canada." Still, the USTR has placed both India, whose IP laws are being praised by Consumers International and Canada, which has low piracy rates even by the accounts of the notoriously propagandist BSA, have both been placed in the Priority Watch List. The reasons for doing so are not all that unclear if we look at who really shapes the USTR's Special 301 report.

The India section of the USTR Special 301 report [pdf] (pp. 18-19) notes:
"India will remain on the Priority Watch List in 2009. India has made progress on improving its IPR infrastructure, including through the modernization of its IP offices and the introduction of an e-filing system for trademark and patent applications. Further, the IP offices have started the process of digitization of intellectual property files. In addition, the Indian ministerial committee on IPR enforcement has supported the creation of specialized IPR police units. Customs enforcement has also improved through the implementation of the 2007 IPR (Imported Goods) Enforcement Rules as well as by seizures of unlicensed copyrighted goods intended for export. However, the United States remains concerned about weak IPR protection and enforcement in India. The United States continues to urge India to improve its IPR regime by providing stronger protection for copyrights and patents, as well as effective protection against unfair commercial use of undisclosed test and other data generated to obtain marketing approval for pharmaceutical and agrochemical products. The United States encourages India to enact legislation in the near term to strengthen its copyright laws and implement the provisions of the WIPO Internet Treaties. The United States also encourages India to improve its IPR enforcement system by enacting effective optical disc legislation to combat optical disc piracy. Piracy and counterfeiting, including of pharmaceuticals, remain a serious problem in India. India’s criminal IPR enforcement regime remains weak. Police action against those engaged in manufacturing, distributing, or selling pirated and counterfeit goods, and expeditious judicial dispositions for IPR infringement and imposition of deterrent-level sentences, is needed. As counterfeit medicines are a serious problem in India, the United States is encouraged by the recent passage of the Drugs and Cosmetics (Amendment) Act 2008 that will increase penalties for spurious and adulterated pharmaceuticals. The United States urges India to strengthen its IPR regime and stands ready to work with India on these issues during the coming year."

Large chunks of it seem to have been 'borrowed' from the IIPA submissions. The IIPA (International Intellectual Property Alliance), which is made up of US-based IP-maximalist lobbyists like the Motion Picture Association of America, Recording Industry Association of America, National Music Publishers Association, Association of American Publishers, and Business Software Alliance, is a body that was created to lobby the USTR to impose trade sanctions on those countries which did not follow the path that IIPA thought best for those countries.
Interestingly, the IIPA submissions talk not of IIPA's concern about weak IPR protection and enforcement in India, but instead states: "the United States remains concerned about weak IPR protection and enforcement in India". This exact line even manages to finds itself in the USTR Special 301 report. Many IIPA complaints find themselves as USTR recommendations, including: a) fast-track judical dispositions of IP cases; b) special laws against optical disc piracy; c) ratification of the WCT and WPPT (the "WIPO Internet Treaties"); d) increased criminal enforcement of intellectual property.

Thus, the Special 301 report emerges as a discredited report that the US's trade partners should not (and by many accounts do not) pay attention to. Measurement of IP balance and consumer-friendliness such as the Consumers International IP Watch List are more important, and should eventually lead to a measurement index for Access to Knowledge.

'Internet and Deliberative Democracy': Panel Discussion Featuring Sunil Abraham, Philippe Aigrain and Mario Losano

Sanchia de Souza — Thu, 04 Jun 2009 12:25:00 +0530

Sunil Abraham, director of the Centre for Internet and Society in Bangalore expresses previously unpublished views on piracy, attribution and the IP regime in a panel discussion on Internet and Deliberative Democracy with Philippe Aigrain (Sopinspace), and Prof. Mario Losano (jurist, Univ. Piemonte Orientale) moderated by J.C. De Martin of NEXA Center for Internet and Society at the premier edition of the Democracy Biennial, Torino May 25 2009.

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Please click here to read the original post on the Cluster website.

Letter on South Africa's IPRs from Publicly Financed R&D Regulations

Pranesh Prakash — Tue, 02 Jun 2009 15:20:00 +0530

May 29, 2009

To
The Hon. Minister of Science and Technology
Department of Science and Technology
Private Bag X894
Pretoria
South Africa
0001

Dear Ms. Pandor,

The Centre for Internet and Society is a non-profit civil society organisation working primarily in the areas of intersection between the Internet and society to promote pluralism, public accountability, and new pedagogic practices, with particular emphasis on the issues facing developing nations. We work closely with the scientific community in India, even having a respected scientist, Prof. Subbiah Arunachalam, as a distinguished fellow of our Centre. We have collaborated with, inter alia, scientific organisations such as the Council of Scientific and Industrial Research, the Indian Academy of Sciences, and the National Aerospace Laboratories. You can find more details about our work at our website .

We understand that the Department of Science and Technology has called for comments on the Intellectual Property Rights from Publicly Financed Research and Development Regulations. While many in South Africa have raised serious doubts about the workability of the Regulations, we too, being from a developing country which seeks to capitalise on its scientific resources, wish to register a few serious concerns.

We have two main concerns. First, we believe that a law whose main aim is compulsory control of research through intellectual property law is counter-productive and that the unintended consequence of such a law would be an inevitable slowing down of research as productive knowledge gets trapped in a gridlock, unable to be used by other scientists and businesses. Second, we believe that even if such a statute is to be endorsed, at least the regulations must ensure enough leeway for scientists to contribute to the knowledge commons by promoting open access to knowledge, open innovation policies, open collaborations, and the open source philosophy.

To start with the law, we refer you to an article written by Prof. Anthony So of Duke University and his colleagues (attached hereto), in which they discuss the non-desirability of importing Bayh-Dole style statutes into developing countries. They list out multiple reasons for coming to this conclusion. Amongst others, they point out the problem of patent thickets will arise from multiple universities and research institutes patenting basic research. Such thickets are especially likely to form in interdisciplinary areas such as nanobiotechnology, microarrays, etc., where researchers and companies willing to bring out products will have to contend with numerous patents from multiple fields, thus leading to products never making it to the marketplace since they become economically unviable due to the number of associated patents and the consequent high rates of royalties. It must be understood that even if a company decides to go ahead with such a product, the unduly high cost would be borne by the citizens of South Africa. Such laws also make the faulty assumption that intellectual property rights are the only way to promote innovation and ensure returns on R&D investment.

The growing instances of embracing of openness and repudiation of patents and other IP as means of promoting innovation must be borne in mind. In India, the Council of Scientific and Industrial Research, under Dr. Samir Brahmachari's leadership has launched the Open Source Drug Discovery programme. This programme encourages collaboration and sharing of research as a more efficient way of ensuring that research is converted into products. A legislation such as the Intellectual Property Rights from Publicly Financed Research and Development Act represents the antithesis of such progressive policies which developing countries are looking towards to spur their advancements in science and technology.

Further, the experience of many universities and research institutions, including the Indian Council of Scientific and Industrial Research as well as, shows that often much more money is spent in pursuing patents than is actually generated from them. Thus, technology transfer offices often either just break even or run a loss.

Additionally, it must be noted that "technology transfer", often cited as a boon of the Bayh-Dole Act, happens quite vibrantly in the absence of intellectual property too. Historically, public research centres have not spent money on acquiring patents, instead choosing to disseminate knowledge through presentations at conferences, publications in journals, and teaching of students. In fact, the paper by Anthony So et al. quotes both industry as well as donor agencies as opining that technology transfer offices, instead of being gateways to innovation, often end up gatekeepers of knowledge.

While commercialisation itself is not inimical to research, such commercialisation should a) not be foisted upon researchers and research institutes; b) not come at the sake of public interest. In this regard, we wish to draw your attention to a book by Peter Mugyenyi titled Genocide by Denial. In this book Dr. Mugyenyi presents a compelling account of the millions of deaths he believes are directly attributable to profit-seeking by drug companies. Such profit seeking puts commercial benefits derived from state-granted monopolies in the form of patents ahead of public interest. Neither the Act nor the Regulations provide sufficient safeguards against such profit seeking.

One way to do this would be to make the decision of the researcher or research institute to refrain from commercialising the research binding on the National Intellectual Property Management Office (NIPMO). Similarly, the NIPMO must have the authority to overrule a researcher or a research institute seeking control under intellectual property law when the NIPMO considers such control to be antithetical to public interest. This would help to accommodate open access and open innovation, two ideas which were the norms earlier and are again finding favour after the hey days of intellectual property in the West. Another way would be to prevent discrimination in the licensing of intellectual property and thus barring exclusive licensing agreements. Thus, any party willing to pay reasonable royalties would be able to make use of the knowledge or the technology that researchers have uncovered. Thus, to ensure that the research is not boxed up with no company willing to pay the demanded royalties, NIPMO must have the power to ensure that unreasonable royalties are not demanded.

The membership criteria provided for the NIPMO are amongst the worst aspects of the present Regulations. It is noted that experience in research and development is not one of the requirements for appointment to NIPMO. Those who have no familiarity with research and development are in a disadvantageous position when it comes to determining the shape of further research and development. By giving such a role to IP managers and businessmen whose primary interest is generating profit and not furthering public interest, a great disservice is being done to all researchers as well as citizens since ultimately all of them will have to bear the additional costs imposed by exclusive licences and the profits that NIPMO will seek to further, given its current compositional rules.

The Regulations as currently envisaged create a large layer of bureaucracy which will only end up harming the aims of increased research and technology transfer. Universities and research institutes will also have to create multiple new offices to comply with the requirements of the Regulations (for instance, to conduct biannual IP audits). Such centralisation and bureaucratisation of research is to be avoided.

The Regulations also end up forcing researchers to refrain from taking funding from those donors who have a commitment to openness, such as the Wellcome Trust which promotes open access, and donors who will only fund projects that result in open source software and open technical standards, since their commitments may conflict with the requirements of the Regulations, given that the Regulations seek to promote not just control over research by establishing IP over it, but actually commercialising it too. While NIPMO has the choice of giving the go-ahead to such projects, it is not required to do so under the Regulations. This situation should be rectified. Further, it would end up discouraging inter-country collaborations as the researchers are mandated to independently apply for IP protection in South Africa and in foreign jurisdictions too unless they get special clearance from NIPMO.

Given all these concerns, we urge you to make substantive changes to the Regulations before bringing them into effect.

Yours sincerely,

Pranesh Prakash
Programme Manager
Centre for Internet and Society

Blog

Arguments Against Software Patents in India

Preamble

What are Patents?

Philosophical Justification Against Software Patents

Legal Case Against Software Patents

Practical Reasons Against Software Patents

Patent Landmines / Submarine Patents / Patent Gridlocks / No Exception for Independent Creation

Don't These Cases Show How Software Patents Help Small Companies?

Term of Patents

Software Industry Progressed Greatly Without Patents

Copyright Exists for Software

Insufficient Disclosure

Software Patents Work Against Free/Libre/Open Source Software

Conclusion

CIS Statement on the WIPO Broadcast Treaty at SCCR 19

CIS Statement on the WIPO Broadcast Treaty at SCCR 19

Statements by other organizations on WIPO Broadcast Treaty at SCCR 19

Piracy Studies in India

Special ‘301’ Reports

The Effects of Counterfeiting and Piracy on India’s Entertainment Industry

Sixth Annual BSA and IDC Global Software Piracy Study

Motion Pictures Distributors Association’s Internet Piracy Studies

Enforcement of Anti-piracy Laws by the Indian Entertainment Industry

International Intellectual Property Alliance

Motion Pictures Association

Indian Music Industry

Business Software Alliance

Industry Enforcers

IJLT-CIS Law Essay Competition

Themes

Judging

Prizes

Eligibility

Submission Guidelines

Access to online information and knowledge – advancing human rights and democracy

At the end of the niche optical pirate

Getting to the National Market

Meet the Pirate

The Business of Piracy

Enforcement Threat

World IT Forum 2009

Fallacies, Lies, and Video Pirates

Something being substandard is not the same as something being counterfeit.

Counterfeiters and pirates are not always seeking to fool consumers.

While commercial film piracy funds terrorists, so does pretty much every business activity.

"To copy without authorization is to steal", the death penalty, and drug peddling.

Repeating false 'statistics' does not make them true.

IP expansion and more stringent enforcement is counter-productive.

Civil Society Letter Against TRIPS-Plus IP Enforcement

An Open Letter to the President of Confederation of Indian Industry (CII) on the Third International Conference on Counterfeiting & Piracy

Signatories to this letter

Emerging Bit Torrent Trends in India

Are you Game?

Grey Markets

Size of the Gaming Market

Stepping Stone to Digital Ecosystem

LINKS

Consumers International IP Watch List 2009

'Internet and Deliberative Democracy': Panel Discussion Featuring Sunil Abraham, Philippe Aigrain and Mario Losano

Letter on South Africa's IPRs from Publicly Financed R&D Regulations